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CIRCULAR No

CIRCULAR No.1-BXD/QLN OF MARCH 4, 1996 GUIDING THE TRANSFER OF STATE-OWNED DWELLING HOUSES SLATED FOR SALE FROM ADMINISTRATIVE AND NON-BUSINESS AGENCIES, THE ARMED FORCES, MASS ORGANIZATIONS, POLITICAL AND SOCIAL ORGANIZATIONS, AND STATE-OWNED ENTERPRISES TO THE HOUSE SELLER

Pursuant to Item 2, Article 8 of Decree No.61-CP of July 5, 1994 of the Government, after consulting the Central Steering Committee on the Dwelling Houses and Residential Land Policy, the Ministry of Construction gives the following guidance on the transfer of State-owned dwelling houses slated for sale from the administrative and non-business agencies, the armed forces, mass organizations, political and social organizations, and State-owned enterprises to the house seller:

I. THE COMMON PRINCIPLES:

1. The administrative and non-business agencies, the armed forces, mass organizations, political and social organizations, and State-owned enterprises (hereunder referred to as the transferor) which are currently managing the State-owned dwelling houses slated for sale must transfer those houses to the house seller as mentioned in Item 1, Article 8 of Decree No. 61-CP according to the following stipulations:

a/ If the house transferor belongs to a central agency, the transfer of dwelling houses shall be effected after the Ministry or the central branch concerned (hereunder referred to as the Ministry) issues a transfer paper and the People�s Committee of the province or city concerned under the Central Government (hereunder referred to as the province) issues a take-over paper.

b/ If the house transferor belongs to a local agency, the transfer of dwelling houses shall be effected after the Provincial People�s Committee issues a transfer decision.

2. The transfer of dwelling houses shall be effected through minutes of house transfer between the two sides on the principle of transferring the residential land, dwelling house and the house user exactly as they are at the time of transferring.

II. THE TRANSFER PROCEDURE:

1. The house transferor shall make a list of the State-owned dwelling houses under its management and send it to the provincial planning management agency.

The provincial planning management agency, pursuant to the planning of residential quarters slated for sale according to Decree No.61-CP and ratified by the Provincial People�s Committee, shall give a written reply to the house transferor specifying which houses can be sold and which houses cannot be sold (no matter whether or not the unit in charge of the houses has the legal papers on these dwelling houses and residential land).

In case dwelling houses are built on the land allotted for temporary use or without a decision on land allotment, or on the land allotted for use as office space, production workshop, or shop, each specific case must be considered to determine whether or not that dwelling house is slated for sale.

2. Basing itself on the written reply from the provincial planning management agency, the house transferor shall make a list of the dwelling houses slated for sale and send it to the agency of superior level according to the following order:

a/ If the house transferor belongs to a central agency, it must send the list of dwelling houses slated for sale to the host Ministry so that the latter can issue a decision to transfer those houses to the province.

b/ If the house transferor belongs to a local agency, it must send the list of dwelling houses slated for sale to the Provincial People�s Committee.

3. After receiving the official dispatch enclosed with the list of dwelling houses slated for sale from the Ministry, the Provincial People�s Committee shall have to give a written reply to the Ministry on the take-over of those dwelling houses.

4. Considering the dwelling houses slated for sale which are transferred by the Ministry and reported by the local agencies concerned, the Provincial People�s Committee shall issue a decision assigning the Housing and Land Service or the Construction Service (where there is no Housing and Land Service) or the Municipal People�s Committee belonging to the province, provincial capital, precinct or district to take over the dwelling houses in their locality.

5. The Housing and Land Service or the Construction Service (where there is no Housing and Land Service) or the Municipal People�s Committee belonging to the province, provincial capital, precinct or district, considering the list of dwelling houses which it is assigned by the Provincial People�s Committee to take over, shall send a transfer document to the Real Estate Company to organize the take-over. Where there is no Real Estate Company, the Municipal People�s Committee belonging to the province, provincial capital, precinct or district shall directly take over the houses.

6. After receiving the list of dwelling houses which it should take over, the Real Estate Company or the Municipal People�s Committee belonging to the province, provincial capital, precinct or district (hereunder referred to as the house recipient) shall reach agreement with the house transferor on the schedule of transferring the houses and organize the take-over as scheduled on the principle of transferring the dwelling houses, residential land and house users as they are at the time of transfer.

More specifically:

a/ On residential land: The house transferor shall transfer all the lot of residential land under its management together with the existing dossier including a decision on land allotment, a certificate on the right to use the land, a map of the land lot, receipts on land tax payment...

In case there is no dossier on the land, the two sides shall put up landmarks on the lot of land and transfer it according to these landmarks. At the same time, they must write down clearly the reason why there is no land dossier, say, the dossier has been lost, the house has been taken over from the old regime without any land dossier, there is no decision on land allotment, etc.

In case a dwelling house is located in a residential quarter where houses are managed by different units and there are no boundaries separating the houses, it should be written on the paper on house transfer that the dwelling house is located in a residential quarter on a common plot of land.

b/ On dwelling houses: Each house shall be transferred separately (if the house transferor is managing the whole house), or each apartment shall be transferred (if the house transferor manages only some apartments in a multi-apartment building).

A house or apartment must be transferred together with its existing dossier, including: a blue print, a construction permit, a decision on the transfer of the house (concerning those houses taken over from the old regime), the minutes on the take-over of the house from another unit, a dossier on the buying of the house (if it was bought from another owner), etc.

If no dossier of the dwelling house is available, then the two sides shall transfer it on the basis of drawing the floor space of the house on the lot of land, or of the floor space of the apartment in the building (if the unit concerned manages only a few apartments in a building).

No detailed measurement and drawing of the dwelling house shall be made for the transfer.

No extension of the dwelling house built by the house user shall be transferred (because it does not belong to the State), but the extension must be shown on the floor space for subsequent solution.

If a State-owned house was upgraded, or demolished and rebuilt by the tenant, the house transferor must certify in writing the remaining value of the State-owned house at the time of upgrading or demolition, so that the house recipient can fix the price of the house when it sells to the tenant.

c/ On the house users: They must hand over a list of the households that are really occupying the house , regardless of whether they have signed or have not signed a lease contract, or they have a lease contract that bears the name of a former tenant (a house sublet), together with all the contracts on house lease and an account of total house rent arrears.

The transfer of residential land and dwelling houses together with a list of households using them shall be effected with the minutes on the transfer of the dwelling houses and residential land.

7. Together with the transfer of dwelling houses, the financial institutions (of the same level) in charge of the house transferor shall give financial guidance to each case of house transfer which must clearly register the value of the dwelling house (which is recorded in the accounting book of the house and the source of funds used to build that house) as a basis for recording an increase or decrease in the capital of fixed property of the house recipient and the house transferor.

No evaluation of the remaining value of the dwelling house shall be made during the transfer of the house.

8. In case the house transferor is fully managing a whole residential quarter including dwelling houses, residential land and the infrastructure system, the two sides shall fully transfer the whole residential quarter.

9. After receiving the dwelling house, the house recipient shall have to sell it in accordance with Decree No.61-CP (by measuring and drawing the dwelling house and residential land, evaluating the remaining value of the house, fixing a selling price of the house, signing a contract on the sale of the house, implementing the contract, and guiding the buyer in applying for a certificate of dwelling house ownership and residential land use). With regard to those apartments whose tenants do not buy them, the house recipient shall continue to manage those apartments in compliance with Decisions No.118-TTg and No.33-TTg issued by the Prime Minister.

10. With regard to those State-owned dwelling houses which are classified as not for sale, but which the Minister concerned and the President of the Provincial People�s Committee have agreed to transfer, these houses shall be transferred in accordance with this Circular.

In the process of transferring the dwelling houses, if the sides concerned have any problem, they should inform it to the Ministry of Construction for settlement directions.

For the Minister of Construction

Vice-Minister
NGUYEN MANH KIEM